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on Regulation |
| By: | Behrang Shirizadeh (CIRED / TOTAL S.A.); Philippe Quirion (CIRED) |
| Abstract: | In the wake of the Paris agreement, France has set a zero net greenhouse gas emission target by 2050. This target can only be achieved by rapidly decreasing the share of fossil fuels and accelerating the deployment of low-carbon technologies. We develop a detailed model of the power sector to investigate the role of different low emission and negative emission technologies in the French electricity mix and we identify the impact of the relative cost of these technologies for various values of the social cost of carbon (SCC). We show that for a wide range of SCC values (from 0 to 500€/tCO2), the optimal power mix consists of roughly 75% of renewable power. For a SCC value of 100€/tCO2, the power sector becomes nearly carbon neutral while for 200€/tCO2 and more, it provides negative emissions. The availability of negative emission technologies can decrease the system cost by up to 18% and can create up to 20MtCO2/year of negative emissions, while the availability of new nuclear is much less important. This study demonstrates the importance of an effective SCC value (as a tax for positive emissions and remuneration for negative emissions) to reach carbon neutrality for moderate costs. Negative emissions may represent an important carbon market which can attract investments if supported by public policies. |
| Keywords: | Power system modelling, Variable renewables, Negative emissions, Social cost of carbon, Nuclear energy |
| JEL: | Q47 Q48 H23 Q21 |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:fae:ppaper:2020.01&r=all |
| By: | Rami Shabaneh (King Abdullah Petroleum Studies and Research Center); Maxime Schenckery (IFP School, IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles) |
| Abstract: | Saudi Arabia relies heavily on oil-based generation to meet its power needs within a geographically unbalanced pattern of natural demand and supply. Many initiatives are currently being assessed to reduce the high opportunity cost of burning oil for the country. This paper examines the cost and implication of a disruptive policy where Saudi Arabia imports liquefied natural gas (LNG). To determine the possible and optimal sources to procure LNG into Saudi Arabia we use and configure a partial equilibrium model, specified as a linear programming problem. Two import scenarios were tested: the first assumes an import terminal with a capacity of 5 million tonnes per annum (MTPA) and the other scenario assumes 22 MTPA. Results show that Saudi Arabia can import LNG for power generation at a discount to the opportunity cost of oil. Especially during the summer months, as Saudi Arabia's gas demand is counter-seasonal to major importing regions it leads to even more interesting market pricing conditions. It also shows a small difference in landed cost of LNG between the two scenarios which implies the global LNG market can accommodate relatively large demand from Saudi Arabia without distorting significantly the global market pricing mechanism. |
| Keywords: | Power generation,Natural gas,LNG trade,Saudi Arabia,Electricity sector,Optimization |
| Date: | 2020–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02535448&r=all |
| By: | Raúl Bajo-Buenestado |
| Abstract: | A number of countries in Sub-Saharan Africa have recently deployed billions of dollars to improve their electricity infrastructure. However, aggregate data shows that the relative number of households with an electricity connection at home has barely increased. In this paper we study the role of blackouts to partially explain why there have been relatively few additional households with electricity access despite the increase in electrification expenditure. Using geo-localized survey data from Kenya, we find that households that live in neighborhoods in which power outages are relatively more frequent are (at least) about 6%-9% less likely to have electricity at home. We also find that households that have electricity access but which experience frequent power outages are also less likely to purchase electrical appliances. |
| Keywords: | Energy poverty, Electricity access, Electrification rates, Sub-Saharan Africa. |
| JEL: | L94 O13 Q41 Q48 |
| Date: | 2020–02 |
| URL: | http://d.repec.org/n?u=RePEc:nva:unnvaa:wp02-2020&r=all |
| By: | Kiani, Behdad; Ogden, Joan; Sheldon, F. Alex; Cordano, Lauren |
| Abstract: | California policy is incentivizing rapid adoption of zero emission electric vehicles for light-duty and freight applications. This project explored how locating charging facilities at California’s highway rest stops might impact electricity demand, grid operation, and integration of renewables like solar and wind into California’s energy mix. Assuming a growing population of electric vehicles to meet state goals, state-wide growth of electricity demand was estimated, and the most attractive rest stop locations for siting chargers identified. Using a California-specific electricity dispatch model developed at UC Davis, the project estimated how charging vehicles at these stations would impact renewable energy curtailment in California. It estimated the impacts of charging infrastructures on California’s electricity system and how they can be utilized to decrease the duck curve effect resulting from a large amount of solar energy penetration by 2050. View the NCST Project Webpage |
| Keywords: | Engineering, Highway Rest Areas, Electric Vehicle Charging, Energy System, Renewable Energy, Long-distance Travel |
| Date: | 2020–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt2c91x13m&r=all |
| By: | David Bounies; Antoine Dubus; Patrick Waelbroeck |
| Abstract: | We investigate the strategies of a data intermediary selling consumer information to firms for price discrimination purpose. We analyze how the mechanism through which the data intermediary sells information influences how much consumer information she will collect and sell to firms, and how it impacts consumer surplus. We consider three selling mechanisms tailored to sell consumer information: take it or leave it, sequential bargaining, and auctions. We show that the more information the intermediary collects, the lower consumer surplus. Consumer information collection is minimized, and consumer surplus maximized under the take it or leave it mechanism, which is the least profitable mechanism for the intermediary. We discuss two regulatory tools { a data minimization principle and a price cap { that can be used by data protection agencies and competition authorities to limit consumer information collection, increase consumer surplus, and ensure a fair access to information to firms. |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:eca:wpaper:2013/303840&r=all |
| By: | Belton, Cameron; Lunn, Pete |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:rb202006&r=all |
| By: | Losey, Robert; Lambert, Thomas |
| Abstract: | This paper is an academic treatment of the pricing of stallion seasons (a “season ” confers the right to breed a mare to a stallion) The commercial stallion seasons market can be represented schematically as a triangle that normally has a single-digit number of stallions offering high-priced seasons in the narrow apex, a moderate number of stallions composing the middle section, and over 150 in the $5,000-$10,000 range. We argue that it is logical for profit-maximizing stallion managers, most especially those in the apex of the stallion seasons triangle, to charge different prices for different groups of buyers of the same stallion seasons. Some of the reasons are straightforward: seasons are worth less as the breeding season progresses because foals produced later in year from those seasons are worth less. Other reasons have more to do with the somewhat monopolistic nature of the market for stallion seasons as explained in this paper. This market power, in turn, creates multiple demand curves for different market segments. As for artificial insemination (AI), the economics of this analysis suggests that breeders significantly benefit from the introduction of AI because costs tend to fall and the choices of potential stallions available to mares would be expanded as better stallions breed more mares. Though the average breeder would benefit, there would be losers from a change in the status quo. Not surprisingly, those who stand to would lose from a move to AI argue against such a move. |
| Keywords: | artificial insemination, breeding, competition, monopolistic competition, monopoly, oligopoly, seasons contracts. |
| JEL: | L1 L8 Q12 Q19 |
| Date: | 2020–04–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:99700&r=all |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Mary Oluwatoyin Agboola (Riyadh, Saudi Arabia); Andrew Adewale Alola (Istanbul Gelisim University, Istanbul, Turkey); Festus Victor Bekun (Istanbul Gelisim University, Istanbul, Turkey) |
| Abstract: | While most African economies are primarily sandwiched with the seemingly unsurmountable task of attaining consistent economic growth and unhindered energy supply, the enormous threat posed by environmental degradation has further complicated the economic and environmental sustainability drive. In this context, the present study examines the effect of economic growth, urbanization, electricity consumption, fossil fuel energy consumption, and total natural resources rent on pollutant emissions in Africa over the period 1980-2014. By employing selected African countries, the current study relies on the Kao and Pedroni cointegration tests to cointegration analysis, the Pesaran’s Panel Pooled Mean Group-Autoregressive distributive lag methodology (ARDL-PMG) for long run regression while Dumitrescu and Hurlin (2012) is employed for the detection of causality direction among the outlined variables. The study traces long run equilibrium relationships b-etween examined indicators. The ARDL-PMG results suggest a statistical positive relationship between pollutant emissions and urbanization, electricity consumption and non-renewable energy consumption. Dumitrescu and Hurlin (2012) Granger causality test lends support to the long-run regression results. Bi-directional causality is observed between pollutant emissions, electricity consumption, economic growth and pollutant emissions while a unidirectional causality is apparent between total natural resources rent and pollutant emissions. Based on these results, several policy implications for the African continent were suggested. (a) The need for a paradigm shift from fossil fuel sources to renewables is encouraged in the region (b) The need to embrace carbon storage and capturing techniques to decouple pollutant emissions from economic growth on the continent’s growth trajectory. Further policy insights are elucidated. |
| Keywords: | non- renewable energy consumption; electricity consumption; economic growth; panel econometrics; Africa |
| JEL: | C32 Q40 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:19/093&r=all |
| By: | Isabelle Cadoret (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique); Emma Galli (Università degli Studi di Roma "La Sapienza" [Rome]); Fabio Padovano (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This paper empirically examines which type of fiscal levies are environmental taxes, by analyzing how governments actually use them. The theoretical literature is polarized between two alternative interpretations of environmental taxes: the Pigouvian and the Leviathan hypotheses, each leading to alternative testable hypotheses. We test them on a sample where the analysts' discretionary evaluations are minimal, the EU-28 countries that committed themselves to correcting a negative environmental externality, the greenhouse gas emissions, by 2020. The estimates lend support to the strict Pigouvian hypothesis, while the Leviathan hypothesis appears less consistent with the data. |
| Keywords: | Arellano–Bond GMM,GHG reduction,Leviathan government,Pigouvian taxation,Environmental taxes |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02544523&r=all |
| By: | Thomas Douenne (PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, IPP - Institut des politiques publiques) |
| Abstract: | Although widely endorsed by economists, carbon tax is struggling to establish itself on the agendas of public decision-makers. One of the reasons for its slow development is the fear that it might generate major redistributive effects, and in particular discriminate against the lowest-income households. This policy brief presents the findings of an ex ante assessment of the redistributive effects on households of the environmental taxation reforms in France in 2018. Carbon tax is intrinsically regressive, but it generates additional revenue. By transferring this revenue neutrally to all households, a progressive reform would be obtained. However, even in such a situation, the reform would generate considerable redistributive effects within the income groups. Such horizontal transfers, which are more difficult to correct, suggest that other tools are necessary for reducing the impact of the reform on the most vulnerable. Looking to the long term, it appears essential to invest in improving the energy performance of housing and of transport. Such policies meet not only environmental requirements, but also the need to reduce the vulnerability of the lowest-income households to future energy price rises. |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-02520812&r=all |